Angola aims to increase gas production as oil output stagnates despite OPEC's exit
Azule Energy, a company optimistic about Angola's gas potential and having had success with its first gas drilling campaign last month, is now considering another exploration. Angola is expecting gas production to increase by more than 20 percent in the next five year as the country targets increased exports to Europe, Asia and domestic demand. Its oil output will stagnate despite leaving OPEC. Angola, Sub-Saharan Africa’s second-largest oil producer after Nigeria is turning to natural gas as a way to drive its industrialisation program based on favorable investment terms.
"Given the fact that Angola is home to a few prolific basins, it's easy to imagine that we can find much more gas reserves," said Adriano Montgini. He was chief executive officer of Azule Energy - a joint venture of BP and Eni.
In response to questions emailed to him, he stated that a second gas well could be drilled in two years, and infrastructure near the first discovery of gas, Gajajeira-01 may help its development.
A press release said that initial estimates showed Gajajeira-01 to have more than one trillion cubic feet of gas, and up to 100,000,000 barrels of condensate.
According to the latest data, natural gas exports in the second quarter totaled 1.35 million metric tonnes, an increase of 19.1% compared to the first quarter. India and Spain were the two largest markets for liquefied gas. Angola’s gas revenues are only a fraction of its crude oil sales, which totaled $5.6 billion in the same time period. The oil-exporting country is also unhappy with efforts to reduce fuel subsidies at home.
Angola’s gas production is expected to rise from 2,973 million standard cubic feet a daily (MMSCFD), this year, to 3,659 MMSCFD by 2030, according the national oil and gas agency ANPG, though some analysts believe that this year's average may fall short.
The government has said that the Sanha Lean Gas Project by Chevron and the New Gas Consortium (NGC), led by Azule, will lead efforts to increase output.
Enverus analyst Jimmy Boulter said that the development of the (NGC) Quiluma-Maboqueiro field, which is due to start around end-2025 will be a real test for gas monetisation.
ANPG officials said that unlike gas, oil production will drop to just over 1 million barrels a daily by 2027, from about 1.1 million bpd currently. They added that the level could be maintained if investment plans and development plans were kept up.
Angola expects to invest $60 billion over the next five-year period in oil and natural gas. 23 exploration wells are expected to be drilled – 11 offshore. Recent projects such as Azule’s 120,000 bpd Agogo FPSO, which began producing oil in July, and TotalEnergies’ 60,000 bpd boost have temporarily boosted Angola’s oil profile.
(source: Reuters)
